Shares of Veeva Systems (VEEV) fell ~9% on Friday to reach the lowest level since May, even as the provider of customer relationship management (CRM) software with its Q3 results exceeded Street forecasts and raised its fiscal 2026 outlook.
The California-based Health Tech reported $2.04 of adjusted EPS on $811.2M in revenue, beating the forecasts by $0.09 per share and $18.6M, respectively. Its revised FY26 outlook of $7.93 for EPS and $3.166B - $3.169B of revenue stood ahead of $7.81 and $3.14B in the consensus, respectively.
However, the selloff came amid concerns over the level of major pharma CRM clients the company has managed to retain, an issue dismissed by Wall Street analysts, according to Bloomberg News.
“So now we used to have 18 out of the top 20. Now we're maybe going to have 14 or so,” Veeva (VEEV) CEO Peter Gassner said during the earnings call in response to a question about the company’s Vault CRM client wins.
With an Overweight recommendation and a $330 per share target, J.P. Morgan argued that, ahead of the release, some analysts were expecting VEEV to win 16 of the top 20 pharma customers. “There is likely to be a certain level of disappointment among investors that VEEV is now realistically targeting winning 14 of the top 20 pharma customers,” the firm added.
Oppenheimer, with an Outperform rating and a $325 target, noted that while financials were solid, “the outperformance was overshadowed by lower-than-expected retention of top-20 pharma CRM customers.”
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